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UAE Freezones Biz News Updates
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Du holding company to launch Virgin Mobile brand in UAE
Virgin Mobile will use EITC’s network and infrastructure in the same way
that du does Telecoms
Emirates Integrated Telecommunications (EITC), the parent company of UAE
telecoms operator du, has launched Virgin Mobile as a new brand in the UAE,
it announced on Tuesday.
EITC has entered into a brand licensing agreement with Virgin Mobile, and
will have the complete ownership, management and operation of the brand in
the UAE.
No financial details of the deal were disclosed by EITC CEO Osman Sultan.
Just like du, Virgin Mobile will use the network, IT and other
infrastructure of EITC. All customer contracts and regulatory obligations
will also be on EITC, Sultan said.
A “small” internal business unit has been created within EITC to handle
Virgin Mobile, which will be headed by managing director Karim Benkirane.
The unit will handle all market facing activities including marketing,
sales, customer care and product development.
“The key objective of launching Virgin Mobile is to introduce a new customer
experience for a niche consumer market,” said Sultan.
Virgin Mobile will have a “digital business model” and will not target the
mass market, added Benkirane.
The service will be launched within a “few weeks” with the website now
registering applicants for a Beta version. No details were immediately
disclosed about the products and tariffs that Virgin Mobile will provide.
“Launching another brand alongside du will cater to the needs of a
specialised segment within the market. Virgin Mobile is a well-known brand
appealing to young people and that’s why we partnered with them,” Sultan
told reporters.
“The launch of Virgin Mobile is also fully compliant with the current
regulatory framework in the UAE. Nothing prevents us from launching another
brand within our business,” said Sultan.
He insisted that there would be no direct sharing of customer data between
du and Virgin Mobile and that all consumer obligations would be maintained.
“There will be healthy competition [between du and Virgin Mobile] giving
greater choice to customers,” he said.
The CEO declined to reveal when he expected the new brand to become
profitable, but acknowledged that it would prove profitable for EITC in the
longer term.
EITC began operations in 2007 with the launch of du, ending the monopoly of
UAE telecom operator Etisalat.
Du has reported declining profits in the eight quarters up to Q3 2016,
mainly due to increasing royalties paid to the government.
31 January 2017
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Courtesy Gulf Business
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